SEAS - Is What's Good for Comcast's Theme Parks Good for Disney and SeaWorld Too?
2023-10-26 11:55:00 ET
The fresh financial results out of Comcast (NASDAQ: CMCSA) on Thursday morning weren't particularly newsworthy on the surface. Revenue for the third quarter rose less than 1%, as gains for its broadband and wireless connectivity were enough to offset the continuing slide in the cable TV and advertising businesses. Free cash flow and adjusted net income had stronger increases, but the market wasn't impressed. The stock was trading 7% lower minutes into the new trading day.
However, a small part of Comcast's business keeps thriving. Comcast's theme parks segment was a bright spot in Thursday's report, and that's welcome news for Walt Disney (NYSE: DIS) and SeaWorld Entertainment (NYSE: SEAS) shareholders as they gear up for their quarterly updates in early November.
Comcast owns and operates the Universal theme parks, and the seasonally potent summertime quarter lived up to its potential. The gated attractions generated $2.4 billion in revenue, a 17% year-over-year improvement for Comcast. The news is even better on the bottom line. Despite the challenge of rising costs, adjusted earnings before interest, taxes, depreciation, and amortization ( EBITDA ) rose 20% to $983 million, a new record for the segment.
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Is What's Good for Comcast's Theme Parks Good for Disney and SeaWorld, Too?